Vietnam oil, gas sector attracts foreign investment
HANOI - The domestic oil and gas sector has attracted 42 foreign direct investment (FDI) projects since
1988, with an average yearly turnover of US$103 million and an average export value of $101.5 million.
According to the Ministry of Planning and Investment (MPI), 25 of these projects are operating with a combined registered
capital of nearly $2.178 billion and implemented capital of $2.591 billion.
The licences of four of the remaining projects have expired.
The operating projects include two fully foreign invested projects, three joint ventures and 20 others working under business
co-operation contracts.
MPI experts say most of the FDI petroleum projects were granted operation licences in recent years and provided employment
for about 600 locals and made significant contributions to the state budget and GDP growth.
The industrial gas exploitation project operating in the north of Vietnam is one of the two 100 per cent foreign invested
projects. It is owned by the Channel Islands and has a registered capital of $10.95 million, including $8 million of prescribed
capital.
However, after nearly five years of operation the project has implemented capital of $16.69 million and has achieved a turnover
of nearly $1.6 million a year. It has also provided jobs for 32 people.
The other fully foreign invested project is the Singaporean liquefied petroleum gas project (Caltex Vietnam). Licensed in late
1998, it has $19.4 million in capital and is about to begin operating.
Meanwhile, the three joint venture projects were granted operation licences between 1997-98. They have a total registered
capital of $1.336 billion, of which authorised capital is $813 million. The joint venture projects directly employ 51 local
workers.
Two joint venture projects invested by Germany and Norway are designed to produce gas for use in industry.
The third joint venture is working with Russian enterprises to construct Vietnam's first refinery in Dung Quat, in the the central
province of Quang Ngai.
When it opens in 2003, this $1.3 billion project will be capable of processing 6.5 million tonnes of crude oil a year.
MPI officials say oil exploration and exploitation activities have attracted foreign investment in 20 projects.
These projects operate in accordance with business cooperation and product-sharing contracts signed between the National
Petroleum and Gas Corporation (Petro Vietnam) and 13 businesses from England, the United States, Holland, the Republic of
Korea, Canada, Japan, Russia, Singapore, Slovakia, Bermuda, the Cayman Islands and the Turks-Caicos Islands.
Vietnam News Agency - September 22, 2000.
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